Pound Slumps as Sales & Consumer Confidence Decline

The Great Britain pound tumbled as the reports showed that the UK economic recovery stalled and the political unrest in the countries of North Africa and Middle East drove traders away from riskier assets.
The CBI’s Distributive Trades survey showed that 36 percent of retailers saw the volume of sales rise in the two weeks to February 16, while 30 percent said they fell compared with a year ago, resulting in the balance of +6 percent. The value was well below expectations (+25 percent) and the previous value of +37 percent. This was the slowest pace of year-on-year growth in eight months.
The GfK NOP Consumer Confidence Index increased to -28 this month from -27 in January. Nick Moon, MD of GfK NOP Social Research, commented:

With the government’s strategy based heavily on economic growth providing private sector jobs to replace the ones being cut, they will have to hope that consumer confidence is a less good predictor of the economy than previously.

The pound also slipped as the uncertainty on the markets, caused by the tensions in Libya and other countries of the region, caused the risk-off sentiment.
GBP/USD traded at 1.6141 as of 2:31 GMT today after it declined on the yesterday’s trading session from 1.6209 to 1.6136. GBP/JPY traded at about 132.26 after it slumped yesterday from 133.73 to 132.13.

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